Brent crude falls 1% as Trump waives some Russia sanctions and tariffs

President Donald Trump waived some sanctions and duties on Russia under a new law, and oil prices fell Monday. December Brent crude futures were down 1.0% at $108.72 a barrel, and the December contract for West Texas Intermediate was off 0.6% at $98.40.

Trump issued the order, dated Oct. 16, under the Lindsey O. Graham Sanctioning Russia and Iran Act of 2026, which he signed into law on Sept. 18. The order sets a 500% increase in the duty rate on Russian goods. It also sets 100% increases for the five largest importers of Russian crude oil and natural gas that make new purchases on or after Oct. 18, and for the top five facilitators of Russian oil sanctions evasion. The order waives the application of those duties, along with several sanctions provisions of the law.

The waivers stay in effect until Trump or the secretary of state determines that further action is appropriate. The order says it does not affect sanctions or other measures under earlier executive orders on Russia.

Traders weighed the prospect of more Russian supply against risks in the Middle East, according to The Wall Street Journal.

"The retreat reflects changing supply expectations after President Trump announced temporary relief from Russia-related energy sanctions and tariffs, potentially allowing additional Russian diesel exports to reach international markets," Naeem Aslam of Zaye Capital Markets said, according to The Wall Street Journal.

Analysts at ANZ Research said the slide may be a technical correction to Friday's rally, and that geopolitical tensions might hold back deeper losses, according to The Wall Street Journal.

Ukrainian drones hit a St. Petersburg oil terminal on Sunday. Refined products, mostly fuel oil, move through the terminal at roughly 120,000 barrels per day, and it is unclear how badly it was damaged, according to CNBC.

Shipping attacks also continue in the Middle East. Two tankers were attacked off Saudi Arabia on Friday, and a tugboat was attacked near the United Arab Emirates on Sunday, according to The Wall Street Journal. The same report said confirmed shipments through the Strait of Hormuz came to 10.17 million barrels daily on average during the week ended Saturday, roughly 41% under prewar levels.

Oil prices climbed in late September after Trump rejected an Iranian proposal that would have opened the Strait of Hormuz for seven days. Brent was up more than 4% at $108.68 a barrel at the time.